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You may have noticed gas prices fluctuating, both for your home and for your car. These changes are being seen across the country, not just here in Georgia. As an authority on natural gas, we want to share what we know with you as you begin to see potentially higher bills.
There are several factors contributing to the recent rise in natural gas rates:
Pipeline Disruptions – There have been outages (both planned and unplanned) on the interstate gas pipelines that supply our natural gas. These projects have disrupted the normal flow of natural gas into Georgia.
Higher Power Demand – There is a shortage in coal supply as many larger properties are currently burning natural gas to generate electricity and conserving what coal they have for the winter.
Liquified Natural Gas (LNG) Exports – There has been a significant increase in demand for gas from the supply sources that serve Georgia that is expected to continue to grow. The total global demand for LNG has also risen, particularly in Europe and Asia, leaving less gas to move toward the Southeast U.S.
Production Issues – An explosion at the Freeport LNG Plant has caused trade to the Eastern pipelines to decrease. The repairs and regulatory approvals to begin service may not be completed until after this winter.
The good news is that the U.S. has some of the world’s largest reserves of natural gas, so we do not need to rely on other countries to supply natural gas. In addition, higher prices for natural gas should encourage U.S. producers to increase production which will eventually cause prices to even out a bit.
How to control your energy costs
Natural gas prices will continue to fluctuate as the global demand increases. One way to control costs is to lock in a rate before prices rise even higher.
Another way to control your energy costs is to make sure your house is energy efficient. Small projects can make a big difference in your home’s energy use.
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